SOTS 2nd Hour: A Big Tech Boost, McDonald’s Consumer Concerns, and LIVE: Chamber Of Commerce CEO 05/01/25

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David Faber (1:02)

Market insight and analysis. You're listening to the opening bell of CNBC Squawk on the Street.

Sara Eisen (1:10)

Good Thursday morning and welcome to Squawk on the Street. I'm Sara Eisen with Carl Quintanilla and David Faber live as always from Post9 at the New York Stock Exchange. Stocks are rallying to kick off the month of May. We're up 1% on the S&P.

NASDAQ's up almost double that, 2% thanks to, in part, better earnings news, especially from Meta. Information technology leads the S&P right now. Microsoft up 9%. That'll do it as well. So good tech earnings helping revive this market. Communication services, second performing, best performing group, energy utilities, consumer discretionary, all higher as well. Healthcare and consumer staples are underperforming right now. As for Treasuries, we are getting ISM manufacturing in just a moment here, but we are seeing some buying continue, especially at the short end of the curve. It's 10-year buying as well with the 10-year note yield just below 4.2. We're 30 minutes here into the trading session. Here's some movers we are watching. I mentioned Microsoft and Meta, big rallies on the back of their latest results. We're going to have much more on the streets reaction and where these stocks go from here. Shares of Eli Lilly dropping. Sales jumped 45% from a year ago thanks to demand for its weight loss drugs and diabetes drugs. But the pharma giant did cut its full year profit outlook due to a recent deal for a cancer treatment. And then McDonalds shares under pressure the fast food giant reporting its biggest US same store sales decline since 2020, pandemic times. More on that and the reasons for it coming up.

Carl Quintanilla (2:36)

Even more econ data crossing the tape this morning. Let's get back to Rick Santelli. Hey again, Rick.

Rick Santelli (2:41)

Hey Carl, April read on ISM, all the manufacturing PMIs. We just received S&P Global a quarter of an hour ago. On the headline number for manufacturing, expecting 47.9 comes in better, 48.7. But do remember, this is the second consecutive read, now under 50, although January and February were above 50 So, losing a little manufacturing expansion momentum with regard to 50, of course, being that line between expansion and contraction. Price is paid. Here's the number we want to go down, but it's been awfully, awfully stubborn to the upside, expecting a number over 70 So the good news, it's under 70, 69.8. The issue is, is that 69.8 is still basically some of the highest levels that we've seen going all the way back to the summer of 22 When you get beyond our previous read, which was 69.4, so you've had back-to-back readings that basically are comp in the mid-22, that isn't necessarily good news. And it does underscore the upswing in all the inflation metrics. The issue here is, maybe these surveys aren't going to be as accurate as some of the more harder data points. Now, let's have new orders, shall we? 47.2, better than expected. That would be the third best reading of the year. And if you look at it, it would comp to January and finally employment. What a week for employment. We have ADP a little light yesterday. We have the big jobs report tomorrow from Bureau of Labor Statistics. And we end up with 46.5, 46.5. It is below 50 And that would be the lightest read. Well, just from last month, which was 44.7. We also had construction spending, always two months in a year. This is a March number, but it's down half a one percent, which means it's now exactly the same as January, where we started the year down half a one percent.